Exposure Draft

EXPOSURE DRAFT 2016-2017-2018 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES

EXPOSURE DRAFT

Treasury Laws Amendment (Taxation and Superannuation Guarantee Integrity Measures) Bill 2018 No.

, 2018

(Treasury)

A Bill for an Act to amend the law relating to taxation and superannuation, and for related purposes

EXPOSURE DRAFT

EXPOSURE DRAFT

Contents 1 2 3

Short title ........................................................................................... 1 Commencement ................................................................................. 1 Schedules........................................................................................... 3

Schedule 1—Directions and penalties in relation to superannuation guarantee charge Taxation Administration Act 1953

Schedule 2—Disclosure of information about non-compliance

4 4 15

Taxation Administration Act 1953

15

Schedule 3—Single touch payroll reporting

17

Part 1—Single touch payroll reporting

17

Income Tax Assessment Act 1997

17


17

Part 2—Reporting of salary sacrifice amounts Taxation Administration Act 1953

Schedule 4—Fund reporting Part 1—Grace period for member information statements Taxation Administration Act 1953

Part 2—Employer reporting of superannuation contributions

19 19 20 20 20 23


23

Part 3—Statements for lost members

24

Superannuation (Unclaimed Money and Lost Members) Act 1999

24


26

Schedule 5—Compliance measures

27

Part 1—Penalties relating to estimates

27


27

Part 2—Director penalties Taxation Administration Act 1953

Treasury Laws Amendment (Taxation and Superannuation Guarantee Integrity Measures) Bill 2018

EXPOSURE DRAFT

30 30

i

EXPOSURE DRAFT

Part 3—Orders to provide security Taxation Administration Act 1953

Schedule 6—Amendments relating to employee commencement Part 1—Disclosure of tax file numbers Income Tax Assessment Act 1936

Part 2—Withholding information Taxation Administration Act 1953

Part 3—Superannuation choice Taxation Administration Act 1953

ii


EXPOSURE DRAFT

32 32 34 34 34 35 35 36 36

3

A Bill for an Act to amend the law relating to taxation and superannuation, and for related purposes

4

The Parliament of Australia enacts:

5

1 Short title

1 2

6 7

8 9 10

This Act is the Treasury Laws Amendment (Taxation and Superannuation Guarantee Integrity Measures) Act 2018.

2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with


EXPOSURE DRAFT

1

EXPOSURE DRAFT

column 2 of the table. Any other statement in column 2 has effect according to its terms.

1 2 3

Commencement information Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

2. Schedules 1 and 2

The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent.

3. Schedule 3, Part 1


4. Schedule 3, Part 2

The later of: (a) the day after this Act receives the Royal Assent; and (b) immediately after the commencement of Schedule 2 to the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 2) Act 2018. However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur.

5. Schedules 4 and 5


6. Schedule 6

1 July 2018.

Note:

4 5 6

2

1 July 2018

This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.


EXPOSURE DRAFT

EXPOSURE DRAFT

1 2 3

4 5 6 7 8

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedules Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


EXPOSURE DRAFT

3

EXPOSURE DRAFT Schedule 1 Directions and penalties in relation to superannuation guarantee charge

1 2 3 4

Schedule 1—Directions and penalties in relation to superannuation guarantee charge

5


6

1 After paragraph 8C(1)(f) Insert: (fa) to comply with an education direction in accordance with subsection 295-10(4) in Schedule 1; or

7 8 9 10

2 After paragraph 14ZW(1)(bh) Insert: (bi) if the taxation objection is made under section 295-35 in Schedule 1 to this Act (about education directions)—the period specified for the purposes of subsection 295-10(3) in the direction given to the person (subject to subsection 295-30(7)); or (bj) if the taxation objection is made under section 296-25 in Schedule 1 to this Act (about directions to pay superannuation guarantee charge)—the period specified for the purposes of paragraph 296-10(3)(c) in the direction given to the person (subject to subsection 296-35(2)); or

11 12 13 14 15 16 17 18 19 20 21 22

3 After Division 290 in Schedule 1 Insert:

23 24

Division 295—Education directions

25

Guide to Division 295

26

295-5 What this Division is about If the Commissioner reasonably believes that an employer has failed to comply with certain obligations relating to superannuation

27 28

4


EXPOSURE DRAFT

EXPOSURE DRAFT Directions and penalties in relation to superannuation guarantee charge Schedule 1

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

guarantee charge, the Commissioner may direct an individual involved in managing the employer to undertake a specified course of education.

Table of sections 295-10 295-15 295-20 295-25 295-30 295-35

Education direction Approval of courses of education Costs of course of education Variation or revocation on Commissioner’s own initiative Variation on request Taxation objection

295-10 Education direction (1) This section applies to you if: (a) the Commissioner reasonably believes that an employer (within the meaning of the Superannuation Guarantee (Administration) Act 1992) has: (i) failed to pay an amount of superannuation guarantee charge that is payable under the Superannuation Guarantee (Administration) Act 1992; or (ii) failed to comply with an obligation to give a statement or information to the Commissioner under that Act; or (iii) failed to comply with an obligation to keep records under that Act; or (iv) failed to pay an amount, that is due and payable, of an estimate under Division 268 in this Schedule of an amount of a liability of the employer referred to in paragraph 268-10(1)(b) (superannuation guarantee charge); or (v) failed to comply with any other obligation under this Act that relates to the Superannuation Guarantee (Administration) Act 1992; and (b) you are: (i) if the employer is an individual—the individual; or


EXPOSURE DRAFT

5


(ii) if the employer is a company—a director (within the meaning of the Corporations Act 2001) of the company; or (iii) if the employer is an unincorporated association or body of entities—a member of the committee of management of the association or body; or (iv) if the employer is a partnership—a partner in the partnership; or (v) any other person who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the employer.

1 2 3 4 5 6 7 8 9 10 11

(2) The Commissioner may give you a written direction (an education direction) requiring you to undertake a specified approved course of education (see section 295-15) and provide the Commissioner with evidence of completion of the course.

12 13 14 15

(3) The education direction must specify the period within which you must comply with the direction (which must be a period that is reasonable in the circumstances).

16 17 18

Note:

19

(4) You must comply with the direction before the end of the specified period.

20 21

Note:

22 23

Failure to comply with this subsection is an offence against section 8C.

(5) You are liable to an administrative penalty of 5 penalty units if you contravene subsection (4).

24 25

Note:

26 27

Division 298 contains machinery provisions for administrative penalties.

(6) An education direction is not a legislative instrument.

28

29

The period may be affected by the operation of subsection 295-30(7).

295-15 Approval of courses of education (1) The Commissioner may, in writing, approve one or more courses of education for the purposes of giving education directions.

30 31

6


EXPOSURE DRAFT


2

(2) A course approved under subsection (1) may be provided by the Commissioner or by another entity.

3

(3) An approval under subsection (1) is not a legislative instrument.

1

4

295-20 Costs of course of education

6

(1) The Commissioner or other entity providing an approved course of education may charge fees for the course.

7

(2) Any fees charged must not be such as to amount to taxation.

5

8 9 10 11

12 13 14

295-25 Variation or revocation on Commissioner’s own initiative If the Commissioner has given you an education direction, the Commissioner may, at any time, vary or revoke the education direction by written notice given to you.

295-30 Variation on request (1) If the Commissioner has given you an education direction, you may ask the Commissioner to vary the direction.

17

(2) The request must be made by written notice given to the Commissioner before the end of the period specified in the direction for the purposes of subsection 295-10(3).

18

(3) The request must set out the reasons for making the request.

19

(4) The Commissioner must decide: (a) to vary the direction in accordance with the request; or (b) to vary the direction otherwise than in accordance with the request; or (c) to refuse to vary the direction.

15 16

20 21 22 23 24 25 26 27

(5) If the Commissioner does not make a decision on the request before the end of 28 days after the day the Commissioner received the request, the Commissioner is taken, at the end of that period, to have decided to refuse the request.


EXPOSURE DRAFT

7


(6) If the Commissioner makes a decision on the request before the end of the period referred to in subsection (5), the Commissioner must: (a) notify you of the Commissioner’s decision; and (b) if the decision is to vary the direction (whether or not in accordance with the request)—give you a copy of the varied direction; and (c) if the decision is to refuse to vary the direction, or to vary the direction otherwise than in accordance with the request— give you written reasons for the decision.

1 2 3 4 5 6 7 8 9 10

(7) If you make a request under this section, then, for the purposes of subsection 295-10(4), the period specified in the direction for the purposes of subsection 295-10(3) is taken to be extended by 1 day for each day in the period: (a) beginning at the start of the day the Commissioner receives the request; and (b) ending at the end of the day that the Commissioner notifies you that a decision has been made on the request.

11 12 13 14 15 16 17 18

19

295-35 Taxation objection If you are dissatisfied with: (a) a decision of the Commissioner to give an education direction, or to vary one otherwise than in accordance with a request under section 295-30; or (b) a decision of the Commissioner under section 295-30 to refuse to vary an education direction; you may object against the decision in the manner set out in Part IVC.

20 21 22 23 24 25 26 27

8


EXPOSURE DRAFT


2

Division 296—Direction to pay superannuation guarantee charge

3

Guide to Division 296

4

296-5 What this Division is about

1

7

If you are liable to pay an amount of superannuation guarantee charge or certain related liabilities, the Commissioner may direct you to pay the amount.

8

If the amount is not paid, you may commit an offence.

5 6

9 10 11 12 13 14 15

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Table of sections 296-10 296-15 296-20 296-25 296-30 296-35

Direction to pay superannuation guarantee charge Offence Variation or revocation Effect of liability being reduced or ceasing to exist Taxation objection Extension of period to comply if taxation objection made

296-10 Direction to pay superannuation guarantee charge (1) The Commissioner may, by written notice, give you a direction requiring you to pay to the Commissioner: (a) an amount of superannuation guarantee charge that is payable by you under the Superannuation Guarantee (Administration) Act 1992; or (b) if an estimate under Division 268 in this Schedule of the amount of a liability of yours to pay superannuation guarantee charge for a quarter under section 16 of the Superannuation Guarantee (Administration) Act 1992 is in force as referred to in subsection 268-10(5)—the amount of the estimate. Note:

The direction does not create a separate liability to pay the amount. However, it may result in you committing an offence against subsection 296-15(1) if the amount is not paid.


EXPOSURE DRAFT

9


(2) In deciding whether to give a direction under subsection (1), the Commissioner must have regard to the following matters: (a) your history of compliance with obligations to pay superannuation guarantee charge, and obligations to pay estimates under Division 268 of superannuation guarantee charge; (b) your history of compliance with other obligations under *taxation laws; (c) whether the amount mentioned in paragraph (1)(a) or (b) is substantial, having regard to the size and nature of your business; (d) any steps that you have taken to discharge the liability to pay the amount or dispute that the liability exists; (e) any other matter that the Commissioner considers relevant.

1 2 3 4 5 6 7 8 9 10 11 12 13 14

(3) The direction must: (a) set out the amount that you are required to pay to the Commissioner; and (b) if the amount referred to in paragraph (1)(a) or (b) relates to a *quarter—set out the quarter; and (c) specify the period before the end of which you must comply with the direction (which must end at least 21 days after the day the direction is given); and (d) explain the consequences of failing to comply with the direction; and (e) explain how you may have the Commissioner’s decision to give the direction reviewed.

15 16 17 18 19 20 21 22 23 24 25 26

28

(4) To avoid doubt, a single notice may relate to 2 or more directions, but must comply with subsection (3) in relation to each of them.

29

(5) A notice given under subsection (1) is not a legislative instrument.

27

30

296-15 Offence (1) You commit an offence if: (a) you are given a direction under subsection 296-10(1); and

31 32

10


EXPOSURE DRAFT


4

(b) the liability to pay the amount set out in the direction is not discharged (whether by you or by another entity) before the end of the period specified in the direction under paragraph 296-10(3)(c).

5

Penalty: 50 penalty units or imprisonment for 12 months, or both.

1 2 3

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

30 31

(2) An offence against subsection (1) is an offence of strict liability. Note:

For strict liability, see section 6.1 of the Criminal Code.

(3) Subsection (1) does not apply if both of the following apply: (a) you took all reasonable steps to comply with the direction before the end of the period specified in the direction under paragraph 296-10(3)(c); (b) you took all reasonable steps to ensure that the liability was discharged before the direction was given. Note:

A defendant bears an evidential burden in relation to the matter in subsection (3): see subsection 13.3(3) of the Criminal Code.

296-20 Variation or revocation (1) If the Commissioner has given you a direction under subsection 296-10(1), the Commissioner may, at any time before the end of the period specified in the direction under paragraph 296-10(3)(c), by written notice given to you: (a) vary the direction to reduce the amount that you are required to pay to the Commissioner in order to comply with the direction; or (b) vary the direction to extend the period specified in the notice of the direction under paragraph 296-10(3)(c); or (c) revoke the direction. (2) To avoid doubt, the variation or revocation of a direction under subsection (1) does not affect any liability that you may have to pay an amount referred to in the direction.

296-25 Effect of liability being reduced or ceasing to exist (1) If:


EXPOSURE DRAFT

11


(a) you have been given a direction under subsection 296-10(1) requiring you to pay an amount of a liability referred to in that subsection to the Commissioner; and (b) the period specified in the direction under paragraph 296-10(3)(c) has not expired; and (c) the liability is reduced (but not to nil); the amount set out in the direction is taken to be reduced by the amount of the reduction referred to in paragraph (c).

1 2 3 4 5 6 7 8

(2) If: (a) you have been given a direction under subsection 296-10(1) requiring you to pay an amount of a liability referred to in that subsection to the Commissioner; and (b) the period specified in the direction under paragraph 296-10(3)(c) has not expired; and (c) either: (i) the liability is reduced to nil; or (ii) the liability ceases to exist; the direction is taken to be revoked.

9 10 11 12 13 14 15 16 17 18

(3) You may be convicted of an offence against subsection 296-15(1) in relation to a direction under subsection 296-10(1) requiring you to pay an amount of a liability referred to in subsection 296-10(1) to the Commissioner even if: (a) the liability is reduced, or ceases to exist, after the end of the period specified in the direction under paragraph 296-10(3)(c); or (b) the liability is discharged after the end of that period; or (c) the liability is, after the end of that period, taken never to have existed, or taken not to have existed at a time on or before the end of that period.

19 20 21 22 23 24 25 26 27 28 29

30

296-30 Taxation objection If you are dissatisfied with a decision of the Commissioner to give you a direction under subsection 296-10(1), you may, at any time before the end of the period specified in the direction under

31 32 33

12


EXPOSURE DRAFT


1 2

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

paragraph 296-10(3)(c), object against the decision in the manner set out in Part IVC.

296-35 Extension of period to comply if taxation objection made (1) This section applies if: (a) the Commissioner gives you a direction under subsection 296-10(1); and (b) the period specified in the direction under paragraph 296-10(3)(c) has not expired; and (c) you: (i) make an objection in accordance with section 296-30 in relation to the Commissioner’s decision to give you the direction; or (ii) make an objection in the manner set out in Part IVC against a taxation decision that relates to your liability to pay an amount referred to in the direction. (2) The period specified in the direction under paragraph 296-10(3)(c) is extended by one day for each day in the period that begins on the day the objection is made and ends at the end of the later of the following days: (a) the day 21 days after the day the Commissioner notifies you of the Commissioner’s decision under section 14ZY in relation to the objection; (b) if, before the end of the day referred to in paragraph (a), you: (i) apply to the *AAT in accordance with Division 4 of Part IVC for review of the Commissioner’s decision; or (ii) lodge an appeal against the Commissioner’s decision with the Federal Court of Australia under Division 5 of that Part; the day the review or the appeal is finally determined. (3) To avoid doubt, the extension of the period under subsection (2) does not affect any liability that you may have to pay an amount referred to in the direction.


EXPOSURE DRAFT

13


1

4 Application of education direction provisions Division 295 in Schedule 1 to the Taxation Administration Act 1953, as inserted by this Schedule, applies in relation to a failure referred to in paragraph 295-10(1)(a) in that Schedule that occurs on or after 1 July 2018 (including a failure to pay an amount that became payable before that day, and remains payable on or after that day).

2 3 4 5 6 7 8

5 Application of superannuation guarantee charge direction provisions Division 296 in Schedule 1 to the Taxation Administration Act 1953, as inserted by this Schedule, applies in relation to a failure to pay an amount referred to in paragraph 296-10(1)(a) in that Schedule, or an amount of an estimate referred to in paragraph 296-10(1)(b) in that Schedule, that first becomes payable on or after 1 July 2018.

9 10 11 12 13

14


EXPOSURE DRAFT

EXPOSURE DRAFT Disclosure of information about non-compliance Schedule 2

1 2 3

4 5 6 7

Schedule 2—Disclosure of information about non-compliance Taxation Administration Act 1953 1 Subsection 355-65(3) in Schedule 1 (table item 7, column headed “and the record or disclosure ...”, paragraph (a)) After “the Superannuation Guarantee (Administration) Act 1992”, insert “, or under a provision of this Act as it relates to that Act,”.

8 9 10

2 Subsection 355-65(3) in Schedule 1 (after table item 7) Insert:

11 12

7A

an individual who is or was an employee (within the meaning of the Superannuation Guarantee (Administration) Act 1992)

(a) is of information that relates to: (i) a failure by the individual’s employer or former employer to comply with the employer’s obligations under the Superannuation Guarantee (Administration) Act 1992, or under a provision of this Act as it relates to that Act, in relation to the employee; or (ii) such a failure that the Commissioner reasonably suspects to have occurred; or (iii) any actions taken by the Commissioner in relation to such a failure or suspected failure; and (b) does not relate to the general financial affairs of the employer.

13


EXPOSURE DRAFT

15

EXPOSURE DRAFT Schedule 2 Disclosure of information about non-compliance

1

3 Subsection 355-65(9) in Schedule 1

2

Repeal the subsection, substitute: (9) To avoid doubt, the exceptions in table items 7 and 7A in table 2 in subsection (3) have effect even if it is, or has been, in dispute or uncertain whether the individual is an employee or former employee of the employer.

3 4 5 6 7

4 Application—disclosure of information The amendments made by this Schedule apply in relation to records or disclosures made on or after 1 July 2018 in relation to matters that arose before, on or after that day.

8 9 10

16


EXPOSURE DRAFT

EXPOSURE DRAFT Single touch payroll reporting Schedule 3 Single touch payroll reporting Part 1

1

Schedule 3—Single touch payroll reporting

2

Part 1—Single touch payroll reporting

3


4

1 Subsection 995-1(1) (definition of substantial employer)

5

Repeal the definition.

6


7

2 Paragraph 8AAZLGB(1)(a)

8 9 10 11 12 13 14 15 16

17

18 19 20 21 22 23 24

Repeal the paragraph, substitute: (a) the Commissioner reasonably believes that the entity has made a payment as a result of which the entity is, or will be, required to notify the Commissioner under section 389-5 in Schedule 1; and

3 Paragraph 8AAZLGB(3)(b) Omit “if subparagraph (1)(a)(i) applied—”.

4 Section 389-1 in Schedule 1 Repeal the section, substitute:

389-1 What this Division is about Employers must (unless they are exempt) notify the Commissioner of certain amounts that relate to payments in respect of their employees. In many cases this Division has the effect of bringing forward the due dates for notification or reporting under other provisions. Notifying under this Division may satisfy an employer’s obligations to notify or report under the other provisions.


EXPOSURE DRAFT

17

EXPOSURE DRAFT Schedule 3 Single touch payroll reporting Part 1 Single touch payroll reporting

1

5 Section 389-5 in Schedule 1 (heading)

2

Repeal the heading, substitute:

3

389-5 Required reporting by employers

4

6 Subsection 389-5(1) in Schedule 1 Omit all the words from and including “If:” to and including “column 2 of that item”, substitute “An entity must notify the Commissioner of an amount of a kind referred to in column 1 of an item in the following table on or before the day referred to in column 2 of that item, if the amount arises as a result of conduct of the entity (such as payment of an amount or provision of a benefit)”.

5 6 7 8 9 10 11

7 Subsection 389-5(6) in Schedule 1 Repeal the subsection.

12 13

8 Subsections 389-15(1) and (2) in Schedule 1 Repeal the subsections.

14 15

9 Subsection 389-15(3) in Schedule 1 (heading) Repeal the heading.

16 17

10 Application—required reporting

18

(1)

The amendments made by this Part apply in relation to an amount that an entity is required to notify to the Commissioner if the requirement to notify arises on or after 1 July 2019.

(2)

For the purposes of Division 3 of Part 1 of Schedule 23 to the Budget Savings (Omnibus) Act 2016, and despite item 24 of that Schedule, the application day for an entity is taken to be the earlier of the following: (a) the application day for the entity under that Division, disregarding the effect of this item; (b) 1 July 2019.

18


19 20 21 22 23 24 25 26

EXPOSURE DRAFT

EXPOSURE DRAFT Single touch payroll reporting Schedule 3 Reporting of salary sacrifice amounts Part 2

1

Part 2—Reporting of salary sacrifice amounts

2


3

11 Paragraphs 8K(2A)(a) and 8N(2)(a) Omit “item 1 or 2”, substitute “item 1, 2 or 2A”.

4 5

12 Paragraph 284-75(8)(a) in Schedule 1 Omit “item 1 or 2”, substitute “item 1, 2 or 2A”.

6 7

13 Subsection 389-5(1) in Schedule 1 (after table item 2) Insert:

8 9

2A

The following amounts: (a) a sacrificed ordinary time earnings amount (within the meaning of the Superannuation Guarantee (Administration) Act 1992) of an employee of the entity, in respect of the entity; (b) a sacrificed salary or wages amount (within the meaning of that Act) of an employee of the entity, in respect of the entity

The day on which the entity would have been required, under this section, to notify the Commissioner of the payment of the amount, if it had been paid to the employee as ordinary time earnings (within the meaning of the Superannuation Guarantee (Administration) Act 1992) or salary or wages (within the meaning of that Act).

10 11 12 13 14 15

14 Subsection 389-25(1) in Schedule 1 Omit “item 1 or 2”, substitute “item 1, 2 or 2A”.

15 Application The amendments made by this Part apply in relation to quarters beginning on or after 1 July 2018.


EXPOSURE DRAFT

19

EXPOSURE DRAFT Schedule 4 Fund reporting Part 1 Grace period for member information statements

1

Schedule 4—Fund reporting

3

Part 1—Grace period for member information statements

4


5

1 After subsection 8K(2A)

2

Insert:

6

(2B) Subsection (1) or (1B) does not apply if: (a) the statement (the original statement) was made under section 390-5 in Schedule 1; and (b) the person who made the original statement makes a further statement to a taxation officer that corrects the original statement in each of the respects in which it is false or misleading in a material particular; and (c) subsection 390-7(1) in Schedule 1 provides for a period for correcting the original statement; and (d) the further statement: (i) is in the approved form; and (ii) is made within the period referred to in paragraph (c) of this subsection.

7 8 9 10 11 12 13 14 15 16 17 18 19

Note:

20 21 22

A defendant bears an evidential burden in relation to the matter in subsection (2B): see subsection 13.3(3) of the Criminal Code.

2 At the end of section 8N Add:

23

(3) This section does not apply if: (a) the statement (the original statement) was made under section 390-5 in Schedule 1; and (b) the person who made the original statement makes a further statement to a taxation officer that corrects the original statement in each of the respects in which it is false or misleading in a material particular; and

24 25 26 27 28 29 30

20


EXPOSURE DRAFT

EXPOSURE DRAFT Fund reporting Schedule 4 Grace period for member information statements Part 1

(c) subsection 390-7(1) in Schedule 1 provides for a period for correcting the original statement; and (d) the further statement: (i) is in the approved form; and (ii) is made within the period referred to in paragraph (c) of this subsection.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Note:


3 Subsection 284-75(8) in Schedule 1 (heading) Repeal the heading, substitute: Further exceptions to subsection (1)

4 At the end of section 284-75 in Schedule 1 Add: (9) You are not liable to an administrative penalty under subsection (1) if: (a) you made the statement (the original statement) under section 390-5; and (b) you make a further statement to a taxation officer that corrects the original statement in each of the respects in which it is false or misleading in a material particular; and (c) subsection 390-7(1) provides for a period for correcting the original statement; and (d) the further statement: (i) is in the *approved form; and (ii) is made within the period referred to in paragraph (c) of this subsection.

5 After section 390-5 in Schedule 1 Insert:


EXPOSURE DRAFT

21

EXPOSURE DRAFT Schedule 4 Fund reporting Part 1 Grace period for member information statements

1 2

390-7 Grace periods for correcting false or misleading member information statements When statements can be corrected

3

(1) A *superannuation provider in relation to a *superannuation plan that has given a statement to the Commissioner under section 390-5 may correct the statement: (a) within the period determined by the Commissioner under subsection (2) of this section; or (b) if paragraph (a) does not apply but the superannuation provider is covered by a determination under subsection (5)—within the period specified in that determination.

4 5 6 7 8 9 10 11 12 13 14 15

Note 1:

Correcting the statement can protect the superannuation provider from liability for a false or misleading statement: see subsections 8K(2B), 8N(3) and 284-75(9).

16 17 18 19

Note 2:

If no period has been determined under subsection (2) or (5) in relation to a superannuation provider, the superannuation provider will not be able to take advantage of the grace period provided for by this section.

20

Determinations for particular superannuation providers (2) The Commissioner may determine the period within which the *superannuation provider may correct a statement.

21 22

(3) The Commissioner must give the *superannuation provider written notice of the determination.

23 24

(4) The *superannuation provider may object, in the manner set out in Part IVC, against a decision of the Commissioner determining a period under subsection (2) relating to the superannuation provider.

25 26 27

Determinations for classes of superannuation providers

28

(5) The Commissioner may, by legislative instrument, determine the period within which *superannuation providers included in a class of superannuation providers specified in the determination may correct a statement.

29 30 31 32

22


EXPOSURE DRAFT

EXPOSURE DRAFT Fund reporting Schedule 4 Employer reporting of superannuation contributions Part 2

2

Part 2—Employer reporting of superannuation contributions

3


4

6 Subsection 389-5(1) in Schedule 1 (table item 3)

1

5 6 7 8

Repeal the item.

7 Application The amendment made by this Part applies in relation to a contribution that is paid on or after 1 July 2018.


EXPOSURE DRAFT

23

EXPOSURE DRAFT Schedule 4 Fund reporting Part 3 Statements for lost members

1

Part 3—Statements for lost members

3

Superannuation (Unclaimed Money and Lost Members) Act 1999

4

8 Section 7

2

Omit:

5

The regulations may establish a scheme under which superannuation providers must provide the Commissioner of Taxation with details relating to lost members. An aim of the scheme would be to reduce at an early stage the number of accounts which become unclaimed money.

6 7 8 9 10

11

9 Section 8 (definition of lost member) Repeal the definition, substitute:

12

lost member means a member of a fund who is: (a) a lost RSA holder within the meaning of the Retirement Savings Accounts Regulations 1997; or (b) a lost member within the meaning of the Superannuation Industry (Supervision) Regulations 1994.

13 14 15 16 17 18

10 Part 4 Repeal the Part, substitute:

19

20 21 22

Part 4—Register of lost members 23 Register of lost members The Commissioner must keep a register of lost members.

23

24


EXPOSURE DRAFT

EXPOSURE DRAFT Fund reporting Schedule 4 Statements for lost members Part 3

1 2

24 Commissioner may give information to State or Territory authorities The Commissioner may give information contained in the register to a State or Territory authority if the State or Territory has a law satisfying the requirements of subsections 18(4) and (5).

3 4 5 6

11 Subsection 24HA(1) Omit “subsections 25(3) and (4)”, substitute “subsection 25(4)”.

7 8

12 Subsections 25(3) and 26(3) Repeal the subsections.

9 10

13 Section 27 Omit “subsection 23(2)”, substitute “Part 4”.

11 12

14 Paragraph 29(1)(b) Omit “subsection 23(2)”, substitute “Part 4”.

13 14

15 Subsection 44(1) Omit “subsection 23(2)”, substitute “Part 4”.

15 16

16 Application of amendments The repeal of subsection 23(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 made by this Part does not apply in relation to information that must be given to the Commissioner, under the scheme mentioned in that subsection as in force at any time before the commencement of this item, for a half year ending before 1 January 2018.

17 18 19 20 21 22 23

17 Transitional provisions

24

(1)

25 26 27 28

The register that, just before the commencement of this item, was kept under regulations made for the purposes of subsection 23(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 is treated, from that commencement, as being kept under section 23 of that Act, as amended by this Part.


EXPOSURE DRAFT

25

EXPOSURE DRAFT Schedule 4 Fund reporting Part 3 Statements for lost members

1

(2)

2 3 4 5 6

Without limiting section 23 of that Act, as amended by this Part, the register kept under that section may contain any information given to the Commissioner (whether before, on or after the commencement of this item) under the scheme established by regulations made for the purposes of that section, as in force at any time before that commencement.

7


8

18 At the end of subsection 390-5(9) in Schedule 1 Add:

9

; (d) information relating to the Superannuation (Unclaimed Money and Lost Members) Act 1999.

10 11

26


EXPOSURE DRAFT

EXPOSURE DRAFT Compliance measures Schedule 5 Penalties relating to estimates Part 1

1

Schedule 5—Compliance measures

2

Part 1—Penalties relating to estimates

3


4

1 Subsection 269-10(1) in Schedule 1 (table item 4)

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Repeal the item.

2 Subsection 269-10(1) in Schedule 1 (note) Repeal the note.

3 At the end of section 269-10 in Schedule 1 Add: Estimates (4) This Division also applies if: (a) a company is a company registered under the Corporations Act 2001; and (b) the company is given notice of an estimate under Division 268; and (c) the company is obliged to pay the amount of the estimate to the Commissioner on or before a particular day (the due day). (5) If this Division applies because of subsection (4), then for the purposes of this Division: (a) the initial day is: (i) for an estimate of an underlying liability referred to in paragraph 268-10(1)(a) (PAYG withholding liabilities)—the day on or before which the company is obliged to pay the amount of the underlying liability to the Commissioner; or (ii) for an estimate of an underlying liability referred to in paragraph 268-10(1)(b) (superannuation guarantee charge)—the last day of the *quarter to which the estimate relates; and


EXPOSURE DRAFT

27

EXPOSURE DRAFT Schedule 5 Compliance measures Part 1 Penalties relating to estimates

(b) the company’s obligation to pay the amount of the estimate is taken to have begun on the day after the initial day.

1 2

(6) For the purposes of subparagraph (5)(a)(i), assume that the underlying liability exists as identified in the notice of the estimate under section 268-15.

3 4 5 6

4 After subsection 269-15(2) Insert:

7

(2A) To avoid doubt, if the obligation of the company is an obligation to pay the amount of an estimate of an underlying liability under Division 268, a director is subject to his or her obligation under subsection (1): (a) even if the underlying liability never existed or has been discharged in full; and (b) even if the unpaid amount of the underlying liability is less than the unpaid amount of the estimate; and (c) at all times on and after the day referred to in paragraph 269-10(5)(b) until the director’s obligation ceases under subsection (2) of this section, including at any such times before the Commissioner has made the estimate or given notice of the estimate.

8 9 10 11 12 13 14 15 16 17 18 19 20 21

5 After subsection 269-35(3) in Schedule 1 Insert:

22

(3AA) If the obligation referred to in subparagraph (2)(a)(i) is an obligation to pay an amount of an estimate of an underlying liability under Division 268, that reference to an obligation includes a reference to the obligation to pay the underlying liability.

23 24 25 26 27

(3AB) For the purposes of subsection (3AA), assume that the underlying liability exists as identified in the notice of the estimate under section 268-15.

28 29 30 31

6 At the end of subsection 269-35(3A) in Schedule 1 Add:

32

28


EXPOSURE DRAFT

EXPOSURE DRAFT Compliance measures Schedule 5 Penalties relating to estimates Part 1

1 2 3 4 5

Note:

6

7 Application

7 8 9 10

If the penalty results from the company failing to pay the amount of an estimate under Division 268 of an underlying liability referred to in paragraph 268-10(1)(b) (superannuation guarantee charge), the defence in subsection (3A) may be available in relation to times before the company is given notice of the estimate.

The amendments made by this Part apply in relation to an estimate made under Division 268 in Schedule 1 to the Taxation Administration Act 1953 on or after 1 July 2018 (whether the underlying liability to which the estimate relates arose before, on or after that day).


EXPOSURE DRAFT

29

EXPOSURE DRAFT Schedule 5 Compliance measures Part 2 Director penalties

1

Part 2—Director penalties

2


3 4

8 Subsection 269-30(2) in Schedule 1 (table, heading to column 2) Omit “the last day of the 3 months after”.

5 6

9 Subsection 269-30(2) in Schedule 1 (table item 1, column 2)

7

Before “the due day”, insert “the last day of the 3 months after”.

8 9

10 Subsection 269-30(2) in Schedule 1 (table item 2, column 1) Omit “(estimates of PAYG withholding liabilities and superannuation guarantee charge)”, substitute “of a liability referred to in paragraph 268-10(1)(a) (PAYG withholding liabilities)”.

10 11 12 13 14

11 Subsection 269-30(2) in Schedule 1 (table item 2, column 2) Before “the day”, insert “the last day of the 3 months after”.

15 16 17

12 Subsection 269-30(2) in Schedule 1 (at the end of the table) Add:

18 19

4

the amount of an estimate under Division 268 of a liability referred to in paragraph 268-10(1)(b) (superannuation guarantee charge),

the day by which the company was obliged to pay the underlying liability to which the estimate relates,

to any extent.

20

30


EXPOSURE DRAFT

EXPOSURE DRAFT Compliance measures Schedule 5 Director penalties Part 2

1 2 3 4 5 6 7 8 9 10 11 12 13

13 Subsection 269-30(3) in Schedule 1 Omit “column 2, treat the reference in the column”, substitute “item 1 or 2, treat the reference in the item”.

14 Application The amendments made by this Part apply in relation to: (a) an amount referred to in item 1 or 3 of the table in subsection 269-30(2) in Schedule 1 to the Taxation Administration Act 1953 (as amended by this Part) that first becomes payable on or after 1 July 2018; and (b) an estimate referred to in item 2 or 4 of the table in that subsection (as amended by this Part) that is made on or after 1 July 2018 (whether the underlying liability to which the estimate relates arose before, on or after that day).


EXPOSURE DRAFT

31

EXPOSURE DRAFT Schedule 5 Compliance measures Part 3 Orders to provide security

1

Part 3—Orders to provide security

2


3

15 At the end of Subdivision 255-D in Schedule 1 Add:

4

5

255-115 Order to comply with requirement (1) The Federal Court of Australia may, on the application of the Commissioner, order you to comply with a requirement to give security under section 255-100, if the Commissioner has given you notice of the requirement under subsection 255-105(1).

6 7 8 9

(2) If the Court makes an order under subsection (1), the Court may also order you to comply with such other requirements made, or that could be made, in relation to you under the taxation law as the Court considers necessary to ensure the effectiveness of the requirement referred to in that subsection.

10 11 12 13 14

(3) An order under subsection (1) or (2) may require you to comply with the requirement on or before a day specified in the order.

15 16

(4) If an order under subsection (1) or (2) is not given to you orally by the court, the proper officer of the court must cause a copy of the order to be served on you in the prescribed manner.

17 18 19

20

255-120 Offence (1) You commit an offence if: (a) you are subject to an order under subsection 255-115(1) or (2); and (b) you fail to comply with the order.

21 22 23 24

Penalty: 50 penalty units or imprisonment for 12 months, or both.

25

(2) An offence against subsection (1) is an offence of strict liability.

26

Note:

27

32

For strict liability, see section 6.1 of the Criminal Code.


EXPOSURE DRAFT

EXPOSURE DRAFT Compliance measures Schedule 5 Orders to provide security Part 3

1 2 3 4 5 6 7 8 9

(3) Subsection (1) does not apply to the extent that you are not capable of complying with the order. Note:


16 Application The amendments made by this Part apply in relation to a requirement to give security in relation to a tax-related liability if the Commissioner gives notice of the requirement under subsection 255-105(1) on or after 1 July 2018.


EXPOSURE DRAFT

33

EXPOSURE DRAFT Schedule 6 Amendments relating to employee commencement Part 1 Disclosure of tax file numbers

2

Schedule 6—Amendments relating to employee commencement

3

Part 1—Disclosure of tax file numbers

4


5

1 Section 202CG

1

Omit all the words after “a payer of the recipient”, substitute: if: (a) the recipient provided the number in a TFN declaration to the Commissioner in relation to the payer; or (b) the recipient made a TFN declaration to the Commissioner in relation to the payer that included a statement referred to in subsection 202CB(2).

6 7 8 9 10 11 12 13

2 Application The amendment made by this Part applies in relation to a TFN declaration made on or after 1 July 2018.

14 15

34


EXPOSURE DRAFT

EXPOSURE DRAFT Amendments relating to employee commencement Schedule 6 Withholding information Part 2

1

Part 2—Withholding information

2


3


4 5

11

a payer (within the meaning of Part VA of the Income Tax Assessment Act 1936) in relation to whom an individual has made a *TFN declaration that is in effect

(a) is of a matter that relates to the individual’s income tax or other liability referred to in paragraph 11-1(b), (ca), (cb), (cc), (cd), (da) or (db); and (b) is for the purpose of assisting the individual to give a declaration under section 15-50 to the payer; and (c) is made as the result of a request made by the individual to the Commissioner

6


EXPOSURE DRAFT

35

EXPOSURE DRAFT Schedule 6 Amendments relating to employee commencement Part 3 Superannuation choice

1

Part 3—Superannuation choice

2


3


4 5

11

An employer (within the meaning of the Superannuation Guarantee (Administration) Act 1992) of an individual

is for the purpose of: (a) informing the individual of one or more of his or her *superannuation interests; or (b) assisting the individual to choose whether to maintain or create a superannuation interest; or (c) assisting the individual to give effect to such a choice

6

36


EXPOSURE DRAFT

Exposure Draft - Treasury Laws Amendment (Taxation and ...

Exposure Draft - Treasury Laws Amendment (Taxation and ...

Suggest Documents

Exposure Draft: Banking Amendment (Credit Card ... - Treasury

Taxation Laws Amendment Bill, 2012

EXPOSURE DRAFT EXPOSURE DRAFT Privacy Amendment ...

Basic Education Laws Amendment Bill: Draft - FEDSAS

Amendment 2 - National Treasury

Exposure Draft - Corporations Amendment (Streamlining of Future of ...

Exposure Draft - Corporations Amendment (Streamlining of Future of ...

Labour Laws Amendment Bill - Juta

Labour Laws Amendment Bill - Juta

the insurance laws (amendment) - PRS

Exposure Draft

Rey ZAMBADA draft - Treasury Department

Corporations Amendment (Crowd-sourced Funding ... - Treasury

taxation of sugar sweetened beverages - National Treasury

rates and monetary amounts and amendment of ... - National Treasury

Exposure Draft - AICPA

Exposure Draft - AICPA

Exposure Draft Hibah

ARFP Exposure Draft

Exposure draft

Exposure Draft - AICPA

Exposure Draft - AICPA

exposure draft - aicpa